Insider Traders Lose UK£69k As Reabold Resources Drops

Simply Wall St · 05/29 14:16

The recent price decline of 11% in Reabold Resources Plc's (LON:RBD) stock may have disappointed insiders who bought UK£164.5k worth of shares at an average price of UK£0.0007 in the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth UK£96.0k which is not ideal.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

The Last 12 Months Of Insider Transactions At Reabold Resources

In the last twelve months, the biggest single purchase by an insider was when Co-CEO & Executive Director Sachin Oza bought UK£112k worth of shares at a price of UK£0.0007 per share. That means that even when the share price was higher than UK£0.00041 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. We note that Sachin Oza was both the biggest buyer and the biggest seller.

In the last twelve months insiders purchased 234.05m shares for UK£165k. But insiders sold 16.74m shares worth UK£9.6k. In total, Reabold Resources insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Reabold Resources

insider-trading-volume
AIM:RBD Insider Trading Volume May 29th 2025

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Reabold Resources Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Reabold Resources insiders own 15% of the company, worth about UK£640k. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

Portfolio Valuation calculation on simply wall st

So What Does This Data Suggest About Reabold Resources Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Reabold Resources insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 5 warning signs for Reabold Resources (4 are significant) you should be aware of.

Of course Reabold Resources may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.